Are refinance rates higher than mortgage rates to purchase a home?

The rates on refinances compared to purchase loans might vary somewhat, but overall, they’re comparable. You might notice slightly higher refinance rates when they’re in demand. Experts don’t recommend trying to time the market — in other words, waiting for rates to drop — as there are so many variables that can affect rates, making it difficult to accurately predict whether they’ll rise or fall. If you find a rate that will save you money, then it’s a good idea to lock it in so you don’t risk missing out if rates jump.

How much does it cost to refinance?

Closing costs for refinancing your mortgage can run thousands of dollars, usually between 2 percent and 5 percent of the loan amount. These costs also vary by where you live and the lender you choose. The costs could include an origination fee, a credit check fee, an appraisal fee and any points.

Is it cheaper to refinance with your current lender?

It might not be, but definitely ask. Most mortgages are packaged up and resold as securities, and once that happens, your original lender’s role is limited. There’s little choice but to start over with a new loan. However, if your lender kept the loan in its portfolio, you might be able to adjust the terms of the loan with lower fees and less paperwork than if you were to do a full refi. Another possibility: To encourage customer loyalty, some lenders offer discounts on closing costs for borrowers who refinance.

Compare today’s refinance rates

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Updated on Jul 09, 2025

On Wednesday, July 09, 2025, the national average 30-year fixed refinance APR is 6.86%. The average 15-year fixed refinance APR is 6.23%, according to Bankrate's latest survey of the nation's largest refinance lenders.

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Weekly national mortgage interest rate trends

Current refinance rates

	30 year fixed refinance	6.79%
	15 year fixed refinance	6.06%
	10 year fixed refinance	6.08%
	5/1 ARM refinance	6.35%

Current mortgage refinance news - July 2, 2025

The average rate on 30-year mortgages as of July 2 fell to 6.72 percent, Bankrate’s weekly survey of lenders shows.

While mortgage rates are well above their pandemic lows, they remain below their peak of 8 percent in late 2023. Refinancing might make sense for homeowners who have locked in home equity gains and want to pay off credit card debt or invest in renovations.

As rates remain elevated, refinancing has fallen out of favor. Homeowners instead are turning to home equity lines of credit and home equity loans. However, in the event of a recession or other economic shock, mortgage rates could fall enough to make refinancing attractive for some borrowers.

Experts tell us: Will mortgage rates fall this week?

Today’s refinance rates

Product	Interest Rate	APR
30-Year Fixed Rate	6.72%	6.78%
20-Year Fixed Rate	6.43%	6.52%
15-Year Fixed Rate	5.94%	6.03%
10-Year Fixed Rate	5.88%	5.97%
30-Year Fixed Rate FHA	6.75%	6.81%
30-Year Fixed Rate VA	6.81%	6.86%
30-Year Fixed Rate Jumbo	6.91%	6.95%

Rates as of Wednesday, July 09, 2025 at 6:30 AM

Product	Interest Rate	APR
30-Year Fixed Rate	6.78%	6.86%
20-Year Fixed Rate	6.54%	6.63%
15-Year Fixed Rate	6.14%	6.23%
10-Year Fixed Rate	6.17%	6.28%
30-Year Fixed Rate FHA	7.07%	7.14%
30-Year Fixed Rate VA	7.24%	7.31%
30-Year Fixed Rate Jumbo	6.82%	6.86%

Rates as of Wednesday, July 09, 2025 at 6:30 AM

Bankrate’s mortgage rates include national rate and APR averages; Bankrate Monitor (BRM) National Index rate averages; and “top offers”:
- National rate and APR averages: Displayed as daily and weekly averages, these rates and APRs are primarily collected from the 5 largest banks and thrifts across hundreds of markets in the U.S.
- Bankrate Monitor (BRM) National Index rate averages: Reported weekly, this long-standing survey collects rates from banks and thrifts across hundreds of markets in the U.S.
- “Top offers”: Displayed daily and weekly, these are an average of the rates listed first on our rate tables as advertised by our partners. The averages shown are based on the loan type and term selected.
You can compare national average mortgage rates to top offers to see how much you could save when shopping on Bankrate.

Learn more about how we collect, display and report mortgage rates.

Ask the Experts

Is now the right time to refinance?

Linda Bell

Writer & Home Lending Expert, Certified HELOC Specialist

“Refinancing could make sense if rates have dropped since you first took out your mortgage. Right now, we’re not seeing a lot of mortgage refinancing activity. That’s no surprise, because many homeowners locked in those 3 to 4 percent rates during the pandemic and refinance rates now are higher than that. For many, refinancing is not worth it right now.”

Mark Hamrick

Washington Bureau Chief, Senior Economic Analyst

“To note what might be obvious to many, if not most, we're living in volatile and uncertain times. Forecasting the future direction of the economy and interest rates is as challenging as ever. Rather than trying to make a strong bet on the future, I'd suggest those mulling refinancing use our online mortgage calculator as part of the process to see what might work for them, or not, based on what we know right now. There's also no cost in shopping around for the best rate, leaving open the decision whether to refinance. In the meantime, paying down debt, including a current mortgage, and focusing on an optimized credit score, should position individuals and households for potential opportunities ahead.”

Greg McBride, CFA

Chief financial analyst, Personal Finance

“If you can shave one-half to three-quarters of a percentage point off your current rate, it pays to start looking into a refinance. You want to make sure to earn back the costs of refinancing with the monthly savings within two to three years. Also, if you have an adjustable-rate mortgage scheduled to reset in the next year, refinancing into a fixed rate may avoid a jump to an even higher rate when the original loan resets.”

How to get the best refinance rate

Let's first cover what influences your mortgage refinance rate. There are many variables that determine your quote, including:

Economic factors like inflation
The lender
The loan type
Your credit score
Your income
Your loan-to-value (LTV) ratio

With these factors in mind, here's how to compare refinance offers and increase your odds of getting the best possible rate:

Nail down your goals. This will help you decide what term – 30 years, 15 years or something else – is best for you. If your aim is to more quickly pay down your loan, for instance, a shorter term might make more sense.
Shop around. Get rate quotes from at least three mortgage lenders, ideally on the same day so you have an accurate basis for comparison.
Compare the interest rate and APR. The interest rate and annual percentage rate (APR) reflect the cost of the loan. The interest rate is the cost to borrow the funds, while the APR includes the interest rate and other costs such as the origination fee and any points.
Consider the lender’s ratings and your experience. Aside from the numbers, evaluate lenders for convenience and responsiveness. Take a look at what other borrowers have had to say about the lender, too.

Learn more: How to get the best refinance rate

How to refinance your mortgage

The process of refinancing your mortgage is similar to the first time you applied for one to buy a home. The key difference: You won’t have to pay nearly as much in closing costs. Here’s an overview of the steps:

Check your credit score: Refinances typically require a credit score of at least 620, but a better credit score will help you secure a better rate and make your refi even more cost-effective. You can check your credit reports at AnnualCreditReport.com.
Choose a refinance type: Many borrowers opt for a rate-and-term refinance, which changes the interest rate, term or both. This isn’t the only way to refinance a mortgage, however.
Calculate the breakeven timeline: A refi usually comes with upfront costs at the closing, just like a home purchase mortgage. Our refinance breakeven calculator can help you figure out when you’ll start realizing savings.
Estimate your equity: If you want to refinance to a bigger mortgage and take cash out of your home as the difference, it's important to know how much available equity you have. Here's how to calculate your home equity.
Compare refinance rates: Explore refinance offers from at least three mortgage lenders and keep an eye on rates while you comparison-shop. This can help you decide when to lock in a rate.
Organize your paperwork: Among the requirements, your lender will want to review tax returns, pay stubs and other proof of income, as well as documentation about any assets or debt.
Apply: Once you know which lenders you're interested in and have your documents ready, complete an application to learn your specific refinance rate and terms.

Learn more: What is mortgage refinancing and how does it work?

Should you refinance your mortgage?

Whether you should refinance your mortgage right now depends on a few factors:

Can you get a significantly lower rate? Refinancing to a lower rate will help you lower your monthly payment and save money over the loan term.
Do you need to change from a variable rate to a fixed rate? If you have an adjustable-rate mortgage (ARM) that’s resetting soon, refinancing to a fixed rate would provide a more predictable payment for your budget.
Do you want to change your term? Many people also adjust the length of their mortgage when they refinance. Typically this means shortening the term from 30 years to 15 years to pay off the mortgage faster or lengthening the term up to 30 years to reduce the monthly payments.
Do you want to tap equity? Many people perform a cash-out refinance to turn their home equity into cash by borrowing against it. This cash can then be used to make home renovations, pay college tuition or cover other major expenses.

Once you know the answers to those questions, review the pros and cons:

Pros

You can lock in a lower rate, which can reduce your monthly payments and total interest paid.
You can change the length of your loan term and rate type.
If your home’s value has increased, you might be able to stop paying for private mortgage insurance (PMI).
If you need money for renovations, a cash-out refi offers relatively cheap capital. It can make your monthly payments more expensive, but home improvements tend to boost your home’s value.

Cons

Refinance closing costs can equal 2 percent to 5 percent of the amount of the mortgage. For example, on a $350,000 loan, expect to pay between $7,000 and $17,500 for closing costs. As such, it can take several years to realize the savings of a refinance.
If you refinance from a 30-year loan to another 30-year loan, you’ll extend your repayment period.

Learn more: Should you refinance in 2025?

Mortgage refinance FAQ

The rates on refinances compared to purchase loans might vary somewhat, but overall, they’re comparable. You might notice slightly higher refinance rates when they’re in demand. Experts don’t recommend trying to time the market — in other words, waiting for rates to drop — as there are so many variables that can affect rates, making it difficult to accurately predict whether they’ll rise or fall.

If you find a rate that will save you money, then it’s a good idea to lock it in so you don’t risk missing out if rates jump.
Closing costs for refinancing your mortgage can run thousands of dollars, usually between 2 percent and 5 percent of the loan amount. These costs also vary by where you live and the lender you choose. The costs could include an origination fee, a credit check fee, an appraisal fee and any points.

Learn more: How much does it cost to refinance a mortgage?
It might not be, but definitely ask. Most mortgages are packaged up and resold as securities, and once that happens, your original lender’s role is limited. There’s little choice but to start over with a new loan. However, if your lender kept the loan in its portfolio, you might be able to adjust the terms of the loan with lower fees and less paperwork than if you were to do a full refi. Another possibility: To encourage customer loyalty, some lenders offer discounts on closing costs for borrowers who refinance.

Learn more: Should you refinance with the same lender?

Refinance resources

Meet our Bankrate experts

Written by: Jeff Ostrowski, Writer and Housing Market Analyst

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.